Legislature(2005 - 2006)BELTZ 211

04/05/2005 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 160 STATE PROCUREMENT ELECTRONIC TOOLS TELECONFERENCED
Heard & Held
+ Senate Bill: TELECONFERENCED
ENTEND BOARD OF OPTICIANS
<Pending Introduction & Referral>
Bills Previously Heard/Scheduled
Including But Not Limited to:
+= SB 139 EXTENSIONS OF OCCUPATIONAL BDS/AGENCIES TELECONFERENCED
Heard & Held
+= SJR 11 REPEAL TELECOMMUNICATIONS TAX TELECONFERENCED
Moved SJR 11 Out of Committee
+= SB 142 REGIONAL SCHOOL BD LAND/BLDG OWNERSHIP TELECONFERENCED
Moved CSSB 142(L&C) Out of Committee
         SB 139-EXTENSIONS OF OCCUPATIONAL BDS/AGENCIES                                                                     
                                                                                                                                
CHAIR CON BUNDE announced SB 139 to be up for consideration.                                                                    
                                                                                                                                
TOM MAHER,  staff to Senator  Therriault, sponsor,  explained the                                                               
provisions in SB 139 stem from  two audit reports prepared by the                                                               
Division of Legislative Audit.                                                                                                  
                                                                                                                                
MR.  MAHER explained  that SB  139  extends the  sunset date  for                                                               
Board of  Marital and Family Therapy  from June 30, 2005  to June                                                               
30, 2010 as  per the audit. It  also incorporates recommendations                                                               
contained in  an audit  of the sunset  process itself.  Section 2                                                               
clarifies  for boards  that are  terminated that  their authority                                                               
for  regulatory and  disciplinary  powers is  transferred to  the                                                               
Department of Community &  Economic Development (DCED). Currently                                                               
this  happens,  but  statutes  don't   give  the  department  the                                                               
authority to those activities.                                                                                                  
                                                                                                                                
Sections  3  and   4  change  the  standard   sunset  period  for                                                               
occupational  boards  in  AS 08.03.020(c)  and  non  occupational                                                               
boards in  AS 44.66.010(c) from not  to exceed four years  to not                                                               
to  exceed eight  years. Increasing  the  standard sunset  period                                                               
allows for better use of audit  staff and make the sunset process                                                               
less  consuming for  the legislature,  the boards  and regulatory                                                               
agencies.                                                                                                                       
                                                                                                                                
Finally, section 5  adds two criteria that must  be considered in                                                               
the  course of  a sunset  review by  the auditors.  They are  the                                                               
extent to which  the board, commission or  agency has effectively                                                               
attained  its objectives  and the  efficiency with  which it  has                                                               
operated and the extent to  which the board, commission or agency                                                               
duplicates  activities  of  another governmental  agency  or  the                                                               
private sector. Expanding the criteria  will assure that auditors                                                               
will  measure   the  efficiency  and  effectiveness   of  boards,                                                               
commissions and the agencies under review.                                                                                      
                                                                                                                                
1:40:39 PM                                                                                                                    
SENATOR BEN STEVENS joined the committee.                                                                                       
                                                                                                                                
1:42:11 PM                                                                                                                    
PAT DAVIDSON, Division of Legislative  Audit, said she recommends                                                               
extension of the Board of  Marital and Family Therapy. During the                                                               
course of her review she looked  at whether it should be combined                                                               
with  other behavioral  health boards.  But if  they continue  on                                                               
separately as they are, she recommends a five-year extension.                                                                   
                                                                                                                                
The  audit  looks at  efficiency  and  the effectiveness  of  the                                                               
Alaska  sunset process,  a process  that came  to Alaska  in 1977                                                               
when a  lot of other  states started  using it also.  Since then,                                                               
six  states have  suspended  their sunset  process  and six  have                                                               
outright repealed it. Alaska has  a standard four-year extension,                                                               
another  group are  at six  years and  another is  at ten  years.                                                               
Given  the  times  the  boards and  commission  have  come  under                                                               
review,  it  really  isn't  a  question any  more  that  they  be                                                               
continued.   She  is   now  looking   more   at  efficiency   and                                                               
effectiveness issues.                                                                                                           
                                                                                                                                
1:45:20 PM                                                                                                                    
RICK URION,  Director, Division  of Occupational  Licensing, said                                                               
he was  a legislator when the  1977 sunset law was  passed and he                                                               
supported SB  139 now. He  noted that  the Board of  Opticians is                                                               
scheduled to sunset  and sooner or later the law  will need to be                                                               
clarified about what the department does in that case.                                                                          
                                                                                                                                
1:46:44 PM                                                                                                                    
CHAIR  BUNDE   moved  Amendment  1  as   follows  for  discussion                                                               
purposes:                                                                                                                       
                                                                                                                                
     Delete section 2 and insert:                                                                                               
                                                                                                                                
     Sec. 2. AS 08.02.020(a) is amended to read:                                                                                
                                                                                                                                
     (a)  Upon   termination,  each   board  listed   in  AS                                                                    
     08.03.010 shall continue in existence  until June 30 of                                                                    
     the next succeeding year for  the purpose of concluding                                                                    
     its affairs.  During this period, termination  does not                                                                    
     reduce or  otherwise limit the  powers or  authority of                                                                    
     each board. One  year after the date  of termination, a                                                                    
     board  not continued  shall cease  all activities,  and                                                                  
     all statutory authority of the  board is transferred to                                                                  
     the department.                                                                                                          
                                                                                                                                
MR.  URION explained  that it  clearly establishes  that all  the                                                               
board's statutory  authority is transferred to  the department. A                                                               
new   section   (4)  makes   it   clear   that  any   litigation,                                                               
investigations and  licenses that have  been issued are  in place                                                               
until changes are made.                                                                                                         
                                                                                                                                
CHAIR BUNDE  said there  were no objections  and Amendment  1 was                                                               
adopted.                                                                                                                        
                                                                                                                                
1:48:14 PM                                                                                                                    
CHAIR  BUNDE   moved  Amendment  2  as   follows  for  discussion                                                               
purposes:                                                                                                                       
                                                                                                                                
     Add a new section to the bill:                                                                                             
                                                                                                                                
     Sect.  4.  AS 08.03.020  is  amended  by adding  a  new                                                                    
     subsection to read:                                                                                                        
                                                                                                                                
     (d) The department  shall carry out the  functions of a                                                                    
     board  that   has  been   terminated  and   ceased  all                                                                    
     activities.  Litigation,  hearings, investigations  and                                                                    
     other proceedings pending at  the time the board ceased                                                                    
     activities continue  in effect and may  be continued or                                                                    
     completed  by the  department. Licenses,  certificates,                                                                    
     orders and  regulations issued or adopted  by the board                                                                    
     and in effect at the  time the board ceased activities,                                                                    
     remain in effect for the  term issued, or until revoked                                                                    
     amended, vacated or repealed by the department.                                                                            
                                                                                                                                
1:48:59 PM                                                                                                                    
SENATOR BEN STEVENS asked if  the legislature allows the board to                                                               
sunset,  does  that automatically  confer  its  authority to  the                                                               
department.                                                                                                                     
                                                                                                                                
MR. URION replied  that is correct. For example, if  the Board of                                                               
Opticians sunsets,  the department would continue  to license and                                                               
follow the  criteria in the  law. He  added, "We license  a whole                                                               
lot of people in the state without boards."                                                                                     
                                                                                                                                
1:50:30 PM                                                                                                                    
MS.  DAVIDSON explained  that two  legal opinions,  one from  the                                                               
Department of  Law and one  from Legislative Legal,  address what                                                               
happens  when a  board sunsets.  One opinion  said that  from the                                                               
time the board sunset, no one  can be issued a license, but those                                                               
licenses don't go away. But nothing  can move forward in terms of                                                               
licensing.  The second  opinion was  that if  a board  goes away,                                                               
then the  regulations that refer to  it are moot. In  which case,                                                               
if  you have  no regulations  to carry  out the  function of  the                                                               
statute,  there is  no process  for people  that are  licensed to                                                               
continue with the license or it goes into a limbo.                                                                              
                                                                                                                                
Last  year she  recommended allowing  the Board  of Opticians  to                                                               
sunset and  starting up a  registration process that  would allow                                                               
for   individuals  who   want  to   call  themselves   registered                                                               
dispensing   opticians  to   meet   certain  qualifications   and                                                               
criteria.                                                                                                                       
                                                                                                                                
MS. DAVIDSON said  if any board is going to  sunset, it goes into                                                               
a  wind-down year.  But  boards  don't want  to  wind down;  they                                                               
really hope for an extension.  This bill lets the department step                                                               
into that space providing for an orderly process.                                                                               
                                                                                                                                
1:53:24 PM                                                                                                                    
SENATOR BEN  STEVENS said  the decision to  shut down  comes from                                                               
the  legislature and  he  asked if  the  department could  manage                                                               
without further input from it.                                                                                                  
                                                                                                                                
MS.  DAVIDSON replied  that the  legislature would  have to  take                                                               
further actions by eliminating all  the statutes if it wanted the                                                               
whole licensing function to go  away. Eliminating the board would                                                               
be a first step in that process.                                                                                                
                                                                                                                                
SENATOR  BEN  STEVENS  asked if  the  department  would  continue                                                               
licensing under regulation until that happened.                                                                                 
                                                                                                                                
MS. DAVIDSON replied, "Yes, it would."                                                                                          
                                                                                                                                
1:55:48 PM                                                                                                                    
CHAIR BUNDE  assumed that  the boards are  charging enough  to be                                                               
self-supporting, but  if the departments have  to issue licenses,                                                               
he thought a fiscal note might be necessary.                                                                                    
                                                                                                                                
MS. DAVIDSON replied that the  statute says any occupations being                                                               
regulated by the division have to be self-supporting.                                                                           
                                                                                                                                
1:56:19 PM                                                                                                                    
SENATOR  STEVENS  asked  what  other   boards  would  fall  under                                                               
provision.                                                                                                                      
                                                                                                                                
MR. URION replied about 20 more licensing boards.                                                                               
                                                                                                                                
CHAIR  BUNDE said  he thought  it was  an administrative  goal to                                                               
eliminate  some  of the  boards,  but  he  didn't  see a  lot  of                                                               
movement in that direction.                                                                                                     
                                                                                                                                
1:56:59 PM                                                                                                                    
CHAIR BUNDE  said there was  no further objection to  Amendment 2                                                               
and  it was  adopted. He  said he  would hold  CSSB 139(L&C)  for                                                               
another hearing.                                                                                                                

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